The document outlines the purpose and processes of performance management and appraisal, focusing on employee alignment, motivation, and development. It details steps for conducting appraisals, various methods of evaluation, and common errors that can affect appraisal effectiveness. Techniques for improving appraisals and a summary of important points are also provided.

1. Human Resources Management
Module 9: Performance Management and Appraisal

2. Module Learning Outcomes
Performance Management and Appraisal
9.1: Discuss the purpose of performance management
9.2: Discuss the appraisal process
9.3: Discuss ways to improve appraisal effectiveness

3. The Purpose of Performance Management

4. Learning Outcomes: Purpose of Performance
Management
9.1: Discuss the purpose of performance management
9.1.1: Discuss the purpose of performance management

5. Understanding the purpose of performance
management
• Employee alignment
• Employee motivation
• Employee development

6. Giving Feedback
• Feedback should be . . .
• Specific
• Helpful
• Timely
• Ongoing
• Actionable

7. Performance Appraisals Serve an Administrative
Function…
• Supports employee disciplinary action
• Supports employee development

8. Practice Question 1
Sydelle, a relatively new manager, is preparing for her first employee appraisal and
asks you for perspective; specifically, what are the purposes of performance
management? Which of the following responses is most accurate?
A. The purposes of performance management are to identify and reward high-
potential talent.
B. The purposes of performance management are to identify and remove non-
performing employees.
C. The purposes of performance management are employee alignment, motivation
and development.
D. The purposes of performance management are to achieve departmental and
organizational goals and objectives.

9. The Appraisal Process

10. Learning Outcomes: The Appraisal Process
9.2: Discuss the appraisal process
9.2.1: Describe the steps in the appraisal process
9.2.2: Evaluate absolute appraisal methods
9.2.3: Evaluate relative appraisal methods
9.2.4: Discuss management by objectives
9.2.5: Discuss how to present an appraisal

11. The steps of the appraisal process
1. Establish performance standards
• SMART goals
2. Communicate performance standards
3. Measure performance
4. Compare actual performance to performance standards
5. Discuss the appraisal with the employee
6. Personnel action

12. Appraisal methods
Absolute Appraisal Methods
• Critical incident
• Graphic rating scale
• BARS (behaviorally anchored rating
scale)
…all ways of measuring a single
employee’s performance
Relative Appraisal Methods
• Ranking
• Paired comparison
…all ways of comparing one employee’s
performance to another’s

13. Management by Objective
• Organizational goals are cascaded down through the organization
• Performance objectives are discussed and agreed to by management and
employees
• Complex and time-consuming method, but results in a clearer understanding of
expectations and greater employee buy-in

14. Presenting an Appraisal
• Schedule an appraisal meeting
• Optionally, ask the employee to
complete and submit a self-evaluation
• Decide on the desired outcome and
plan accordingly
• Develop your talking points
• Conduct the appraisal meeting

15. Practice Question 2
You’re a manager preparing to appraise your employees. Which of the following should
you keep in mind as you do so?
A. Only performance standards that you can observe should be considered.
B. Performance standards should be specific, measurable, achievable, relevant and
time-bound.
C. Only performance that can be expressed in numeric terms should be factored into
the appraisal.
D. To avoid conflict, appraisals should be delivered to employees via email.

16. Practice Question 3
Managers in your organization generally supervise a staff of 30–50 people. Your CEO
has asked Human Resource management to implement a relative appraisal method
that will eliminate the weakest performers. Which of the following should you
recommend?
A. Paired comparison
B. Critical incident rating
C. 20/70/10 rating
D. BARS

17. Appraisal Effectiveness

18. Learning Outcomes: Appraisal Effectiveness
9.3: Discuss ways to improve appraisal effectiveness
9.3.1: Discuss common performance management errors
9.3.2: Identify techniques for improving appraisal effectiveness

19. Errors in conducting performance appraisals
• The leniency error
• The central tendency error
• The recency error
• The halo effect error
• The horns effect error
• Contrast error
• Past performance error
• Biased rating error
• High potential error
• Similar to me error
• Guilt by association error

20. Class Activity: What’s your error?
The class should get together in groups of three. One person should be the evaluator,
one should be the employee, and one should be the observer.
Evaluator: Conduct a performance appraisal for the employee. In it, toss in one
“performance appraisal error.” Choose whether the assessment will be favorable or
tough news for the employee and stick with it.
Observer: Try to determine which of the eleven common appraisal mistakes your
evaluator made. What else could the evaluator have done to give a better appraisal?
Switch positions two more times, so everyone has a turn at all three positions. If one
person has given a favorable appraisal, the next can try a difficult one, and so on.

21. Present: What’s your error?

22. Avoid Errors!
• Cultivate awareness of potential errors
• Rely on data and documentation you’ve compiled, rather than your perceptions.
Focus on the performance, not the person!

23. Improving Appraisal Effectiveness
Kim Scott’s Radical Candor
• Criticizing employees when they don’t
perform isn’t just a manager’s job, it’s
a moral obligation
• Be a caring but challenging manager
Lenny Rachitsky’s Performance
Management System
• Set aside time for adequate
preparation
• Development
• Summary
• Concrete examples
• Peer feedback
• Highlight an employee’s “superpower”

24. Practice Question 4
You’re reviewing appraisal documentation to identify training gaps. Which of the
following scenarios does NOT suggest a perceptual error?
A. A manager who rates every person on the team as “exceeds expectations.”
B. A manager who rates every person on the team as “meets expectations.”
C. A manager who rates staff who are similar to him or her relatively highly.
D. A manager who rates staff at different levels based on documented performance
relative to goals and standards.

25. Practice Question 5
You’re developing a management training program to improve appraisal effectiveness.
Which of the following points should you emphasize?
A. Giving your employees constructive feedback is not just your job, it’s your moral
obligation.
B. Say something nice or don’t say anything.
C. The single most important thing a boss can do is let employees figure things out on
their own.
D. Feedback should only cover development needs.

26. Quick Review
• The purpose of performance management is employee alignment, motivation and
development
• Feedback should be specific, actionable, helpful, timely and ongoing
• The steps of the appraisal process are
• Establish performance standards (using SMART goals)
• Communicate performance standards
• Measure performance
• Compare actual performance to performance standards
• Discuss the appraisal with the employee
• Personnel action
• Appraisals can be absolute, relative, or a hybrid formed from management by
objective situations
• Know common errors and strive to give an effective appraisal